The position management scenario for OTC interest rate instruments allows you to enter interest rate adjustments for OTC interest rate instruments, such as variable interest rate swaps, caps, or floors.

You must have processed the corresponding derivative financial transactions and integrated them into your position. You do this in the scenario for processing derivative OTC interest rate instruments.

You opt for an interest rate adjustment in the course of position measure planning.

You can enter the reference interest rate for the planned interest rate adjustment either manually or automatically. The reference interest rate is used to determine any interest receivable which becomes due. If the option is in-the-money, this amount is calculated automatically and you can display it in the basic overview – either as a single amount or together with previous payment flows. This procedure is executed and saved for each interest rate adjustment until the transaction expires. In the case of a cap which is out-of-the-money, there are no payments on either side.

Once you have made the interest rate adjustments, you can use the scenario for processing derivative OTC interest rate instruments to navigate to the Treasury accounting functions.